• Title/Summary/Keyword: supplier cost

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A Study on the Effects of the Introduction of Web-based Purchasing Systems on the Buyer-Supplier Relationship

  • 안병훈;정영조
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2000.10a
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    • pp.95-98
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    • 2000
  • The rapid expansion of the WWW is well known and has huge potential for enabling companies, large and small, to gain new marketplaces globally at low cost, or to be disintermediated by others doing so. A totally new competitive environment opening up new opportunities is upon us. As a result, the electronic commerce is growing quickly and the importance of electronic marketplace is emphasized. From the view of SCM, applying the business-to-business electronic commerce to the relationship between firms is expected to make major changes. This study focuses on the effects of the introduction of web-based purchasing systems on the buyer-supplier relationship. We conduct a case study on the Korean firms The major findings of this study are summarized as follows. First, in introductory phase, some buying firms fail to design the appropriate mechanism for business relationships. It can weaken the cooperation between buyers and suppliers. Second, for critical or customized parts, it is possible to gather the information about potential suppliers and to make business relations using it. Third, using web-based purchasing systems, capable suppliers can take more opportunities to leverage its competence for business relations. So we can expect the positive feedback.

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Consideration for Application of 3D Printing Technology to Nuclear Power Plant (3D프린팅 기술의 원전 적용을 위한 고찰)

  • Jang, Kyung-Nam;Choi, Sung-Nam;Lee, Sung-Ho
    • Transactions of the Korean Society of Pressure Vessels and Piping
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    • v.16 no.1
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    • pp.117-124
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    • 2020
  • 3D printing is a technology that has significantly grown in recent years, particularly in the aerospace, defense, and medical sectors where it offers significant potential cost savings and reduction of the supply chain by allowing parts to be manufactured on-site rather than at a distance supplier. In nuclear industry, 3D printing technology should be applied according to the manufacturing trend change. For the application of 3D printing technology to the nuclear power plant, several problems, including the absence of code & standards of materials, processes and testing & inspection methods etc, should be solved. Preemptively, the improvement of reliability of 3D printing technology, including mechanical properties, structural performance, service performance and aging degradation of 3D printed parts should be supported. These results can be achieved by collaboration of many organizations such as institute, 3D printer manufacturer, metal powder supplier, nuclear part manufacturer, standard developing organization, and nuclear utility.

Internet-based Procurement Process for Marine Service (해운대리점의 인터넷 구매/조달 프로세스 구축)

  • 서준용;고재문;고형일
    • The Journal of Information Systems
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    • v.10 no.1
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    • pp.51-72
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    • 2001
  • E-commerce has not only brought about a great change in the way we exchange goods and services but also revolutionized the way we handle business transactions. In addition, it has a significant influence upon the present business structure, and most of firms in service industry as well as manufacturing are considering adopting E-commerce in a serious manner. Most vessels purchase merchandises through a number of shipping agents. As the amount of harbor materials increase, the number of vessels and their navigation frequency also increase. As a result, the amount of procurement for ships has increased. Traditional means such as telephone and fax to handle ever-increasing harbor transaction, however, has proved to be very time-consuming and cost ineffective. Therefore, people are starting to look for more effective ways. In this paper, an internet-based scheme of B2B transaction is proposed to handle procurement problem between shipping agency and shipping company, and between vessel and suppliers as a more effective approach to streamline such problems. We extract problems of shipping agency through task-analysis and present a scheme that performs decision making and procurement as a system agent with brokering structure. Purchaser and supplier are offered material information rapidly and task loads are minimized by the scheme. Also, the system can support decision making of purchasing goods, and information is shared among purchaser, supplier and system through the system interface.

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Characteristics of AS9100 Rev. C Quality Management System and Its Implementation (AS9100 Rev. C 규격의 특징과 적용 방안)

  • Yeo, Eung-Mo;Byun, Jai-Hyun
    • Journal of Korean Society for Quality Management
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    • v.39 no.4
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    • pp.516-526
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    • 2011
  • The AS9100 standard builds upon the ISO 9001:2000 quality management system requirements(in their entirety) and defines additional quality management system requirements for the aerospace industry. The 9100 standard on quality management system requirements is intended to be used at all levels of the supplier chain. The International Aerospace Quality Group has released a revision to 9100 for the aviation, space and defense industries. This change aims at improvement on quality, schedule and cost performance by adopting new requirements based on stakeholders' needs. This paper is to review how the AS9100 QMS Requirement has been established and improved, and to communicate the significant changes from AS9100, Rev. B to Rev. C focusing on reasons for revisions. The proposed schedule and considerations on the transition of the changes to Rev. C are also dealt with in this paper.

The Effectiveness of Decision Support System for the Supplier Selection in e-Marketplace: A Case Study

  • Park Hae-Yeon;Lee Zoonky;Lim Sung-Il;Lee Sang-Goo
    • Management Science and Financial Engineering
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    • v.11 no.3
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    • pp.79-93
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    • 2005
  • Despite the fact that the sourcing process in B2B e-Marketplaces is one of the most important tasks, the evaluation and selection process of suppliers have been ad-hoc based and mainly dependent on the experience of sourcing managers' subjective knowledge. To remedy the problem, we developed a decision support System (called Wise - I) that helps sourcing managers evaluate suppliers in a more systematic way. The system reflects company's strategy and know-how by adopting company enforced weighted scores for different factors and employing a more scientific method of considering factors other than price and on-time delivery rate, utilizing the AHP method. This paper reports the effectiveness of the system as well as the detailed description of the system. To investigate the effectiveness of the system, we collected information through interview and questionnaire survey. The information was also augmented through the firm key index system, which monitors average delivery lead time and on-time delivery rate. The result indicates that the system leads to the efficiency of purchasing section and the transparency of buying process, therefore reduces delivery time and cost.

Case Study on the Success Factors of NPD Process Transformation : From IT to Automotive Product Development Process (신제품 개발 프로세스 변환의 성공 요인에 관한 사례연구 : IT제품에서 Automotive 제품으로)

  • Lee, Hyun Wook;Han, Jung Hee;Kim, Byung Keun
    • Journal of Information Technology Services
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    • v.15 no.4
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    • pp.175-191
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    • 2016
  • This paper investigates changing processes of new product development (NPD) systems. In order to continuously develop first-class products, world wide super-class products and hit products, R&D (Research & Development) must be competitive. Firms must achieve competitiveness in terms of quality and cost by launching new products. Most films focus on improving effectiveness and efficiency of NPD process. However, sometimes, they face to the critical challenge of transforming NPD processes entirely reflecting dramatic change of their core products. Transforming of NPD process is difficult in that it involves technological and organizational changes in marketing, R&D, Engineering and manufacturing systems. The purpose of this paper is to shed light on processes and factors affecting successful transformation of new product development systems. We present a case study on the changing processes of S company's NPD process. S company has changed new product development systems successfully from a major IT equipment supplier to an automotive supplier. Empirical results show successful changes of 10 core NPD processes from understanding the market and customers process to after sales process. In case of transformation of NPD, adaption of attribute of business is crucial for success factors in the process innovation. This paper shows the bridging the gap between IT and automotive industrial dynamics and growth through adaption of two processes in the NPD.

A study on Transaction Cost Theory & Information Technology of Electronic Commerce (전자상거래에서 거래비용과 정보기술(IT))

  • 조원길
    • The Journal of Information Technology
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    • v.1 no.2
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    • pp.245-263
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    • 1998
  • Buyers are transforming their relations with suppliers. For examples, Instead of playing off dozens or even hundreds of competing suppliers against each other, many firms are finding it more profitable to work closly with only a small number of "partners". If will facilitate a move from single-supplier arrangements("hierachies") to mutiple supplier arrangement("markets") because it reduces the costs of coordination with suppliers. According to this logic, Technological developments which lower the cost of acquiring information about prices and product characteristics in a given market should increase to the nymber of tends to lower coordination costs, it wide adoption should lead to an increase in the number of suppliers for most firms, other things being equal. An efficient merket is defined a one that reduces the numer of intermediaries, or the number of Intermediary steps necessary of market tracsaction. It is true that one can order some products via mail order, which reduces the number of intermediaries and cuts transaction costs further Similary, the growth of a global commerce nerwork such as the internet may futher reduce the number of intermediary steps necessary for trade.

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Analytic Approach to e-Transformation of Intermediary (중개유통기업의 e-트랜스포메이션: 분석적 접근)

  • Han, Hyun-Soo
    • Information Systems Review
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    • v.5 no.2
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    • pp.1-21
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    • 2003
  • In this paper, we investigate industrial product intermediary's transformation strategy by exploiting advantages afforded by web based information technologies. Our motivation for this research stems from exploring intermediary's responding strategy to cope with supplier's threatening to disintermediation. From transaction cost perspective, internet can induce both the vertical quasi-integration (electronic hierarchy) and outsourcing (electronic market). Our rationale on directing one of these bi-directional movements is specified on intermediary's value adding on the supply chain. As such, we investigated supply chain performance, IT effects on customer's requirement of channel functions, and channel power structure. Propositions to suggest contingent e-transforming strategic alternatives are logically derived from dyadic nature of supply chain characteristics such as efficiency versus customer services, and supplier dominant versus easy replaceability of suppliers. The contingent e-transformation framework developed from intermediary's perspective is reviewed through longitudinal industry case analysis. Implications from the industry case analysis give us insights for the effectiveness of the framework to combine supply chain characteristics with intermediary's e-transformation.

Developing the Optimized Method of Reliability-Growth Target Setting for Complex and Repairable Products from Business View

  • So, Young-Kug;Jeon, Young-Rok;Ryu, Byeong-Jin
    • Journal of Applied Reliability
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    • v.15 no.4
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    • pp.248-255
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    • 2015
  • Purpose : The purpose of this research is to develop the optimized method and process in the reliability-growth target setting, especially for complex and repairable system (or products) such as vehicle and airplane, construction equipment. Method : A reliability-growth test plan specifies a scenario to achieve the planned reliability value (or reliability target). The major elements in test planning are reliability-growth starting time and reliability level at that time, reliability-growth rate and reliability-growth target. All of them except a reliability target can be referred to the previous development data and reference researches. The reliability target level is directly influencing to test period (or time) which is related to test and warranty cost together. There are a few researches about the reliability target setting method and but showing the limitations to consider the views of engineering, business and customer together. There is no research how to handle the target setting process in detail. Result : We develop the optimized method and systematic process in reliability target setting with considering such views. This research also establish the new concept as production capability which means company (or supplier) capability to product its products. Conclusion : In this research result, we apply the new method to a few projects and can set the reasonable test planning. The developing results is showing the good balance between the developing cost and warranty cost at market.

A Long-term Replenishment Contract for the ARIMA Demand Process (ARIMA 수요자정을 고려한 장기보충계약)

  • Kim Jong Soo;Jung Bong Ryong
    • Proceedings of the Society of Korea Industrial and System Engineering Conference
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    • 2002.05a
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    • pp.343-348
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    • 2002
  • We are concerned with a long-term replenishment contract for the ARIMA demand process in a supply chain. The chain is composed of one supplier, one buyer and consumers for a product. The replenishment contract is based upon the well-known (s, Q) policy but allows us to contract future replenishments at a time with a price discount. Due to the larger forecast error of future demand, the buyer should keep a higher level of safety stock to provide the same level of service as the usual (s, Q) policy. However, the buyer can reduce his purchase cost by ordering a larger quantity at a discounted price. Hence, there exists a trade-off between the price discount and the inventory holding cost. For the ARIMA demand process, we present a model for the contract and an algorithm to find the number of the future replenishments. Numerical experiments show that the proposed algorithm is efficient and accurate.

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